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View all search resultsSMEs struggle to access green financing, govt admits
According to a report released by the Centre for Strategic and International Studies (CSIS) on Friday, Indonesia’s green industry policies remain focused on technical and supply-side measures like energy efficiency and emission cuts, while market demand, financing and investment support are still limited.
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Sustainable investment: Indonesia has begun to tap into the green bond market, both at home and overseas, to finance environmentally friendly projects.
(Shutterstock/File)
G
reen financing remains limited in Indonesia and inaccessible to most small and medium enterprises (SMEs) as the industry’s development has fallen far behind the growing policy discourse, a senior government official has admitted.
Despite increasing attention on sustainable trade and investment, green loans had yet to reach a wide range of firms, said Olvy Andrianita, head of international trade policy at Indonesia’s Trade Policy Agency.
“The spending on green loans does exist, but it hasn’t been massive. It’s still a big talking point; lots of discussions, seminars, but only a few companies can actually benefit,” Olvy told the audience on Friday during the launch of Indonesia’s 2025 Sustainable Trade and Investment Report at the Centre for Strategic and International Studies (CSIS) Auditorium in Jakarta.
Read also: Industry players demand clarity for carbon trade to deliver cuts
She added that SMEs in particular struggled with the complexity of requirements, which included long-term commitment and consistency. “That’s the hardest part for SMEs,” she said.
Indonesia has introduced green policies, such as a green taxonomy and carbon market road map, but their impact remains limited.
According to the CSIS report released Friday, Indonesia’s green industry policies remain focused on technical and supply-side measures like energy efficiency and emission cuts, while market demand, financing and investment support were still limited.
